Potential Medicare Part D Savings on Generic Drugs From the Mark Cuban Cost Plus Drug Company
Authors: Hussain S. Lalani, Aaron S. Kesselheim, Benjamin N. Rome
Journal: Annals of Internal Medicine (2022)

LettersJuly 2022Potential Medicare Part D Savings on Generic Drugs From the Mark Cuban Cost Plus Drug CompanyCorrection(s) for this article:CorrectionsSep 2022Correction: Potential Medicare Part D Savings on Generic Drugs From the Mark Cuban Cost Plus Drug CompanyFREEHussain S. Lalani, MD, MPH, Aaron S. Kesselheim, MD, JD, MPH, Benjamin N. Rome, MD, MPHHussain S. Lalani, MD, MPHProgram On Regulation, Therapeutics, And Law (PORTAL), Division of Pharmacoepidemiology and Pharmacoeconomics, Department of Medicine, Brigham and Women's Hospital, and Harvard Medical School, Boston, Massachusetts, Aaron S. Kesselheim, MD, JD, MPHProgram On Regulation, Therapeutics, And Law (PORTAL), Division of Pharmacoepidemiology and Pharmacoeconomics, Department of Medicine, Brigham and Women's Hospital, and Harvard Medical School, Boston, Massachusetts, Benjamin N. Rome, MD, MPHProgram On Regulation, Therapeutics, And Law (PORTAL), Division of Pharmacoepidemiology and Pharmacoeconomics, Department of Medicine, Brigham and Women's Hospital, and Harvard Medical School, Boston, MassachusettsAuthor, Article, and Disclosure Informationhttps://doi.org/10.7326/M22-0756 SectionsSupplemental MaterialAboutFull TextPDF ToolsAdd to favoritesDownload CitationsTrack CitationsPermissions ShareFacebookTwitterLinkedInRedditEmail This article has been corrected. The original version (PDF) is appended to this article as a Supplement.Background: In January 2022, the Mark Cuban Cost Plus Drug Company (MCCPDC) launched an online pharmacy selling more than 100 generic prescription drugs at the cost of ingredients and manufacturing plus 15% margin, $3 pharmacy dispensing fee, and $5 shipping fee. In some cases, these prices are lower than those paid by insurers, including Medicare.Objective: To estimate the potential savings if Medicare Part D plans paid MCCPDC prices.Methods: For 109 generic medications sold by MCCPDC on 8 February 2022, we identified ...References1. Mark Cuban Cost Plus Drug Company. Medications. Accessed at https://costplusdrugs.com/medications/ on 8 February 2022. Google Scholar2. Centers for Medicare & Medicaid Services. Medicare Part D spending by drug. Accessed at https://data.cms.gov/summary-statistics-on-use-and-payments/medicare-medicaid-spending-by-drug/medicare-part-d-spending-by-drug on 18 February 2022. Google Scholar3. Trish E, Gascue L, Ribero R, et al. Comparison of spending on common generic drugs by Medicare vs Costco members. JAMA Intern Med. 2021;180:1414-1416. [PMID: 34228050] doi:10.1001/jamainternmed.2021.3366 CrossrefMedlineGoogle Scholar4. 2021 Annual Report of the Board of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds. Accessed at www.cms.gov/files/document/2021-medicare-trustees-report.pdf on 18 February 2022. Google Scholar5. Sood N, Shih T, Van Nuys K, et al. The flow of money through the pharmaceutical distribution system. Accessed at https://healthpolicy.usc.edu/wp-content/uploads/2017/06/USC_Flow-of-MoneyWhitePaper_Final_Spreads.pdf on 18 February 2022. Google Scholar Author, Article, and Disclosure InformationAuthors: Hussain S. Lalani, MD, MPH; Aaron S. Kesselheim, MD, JD, MPH; Benjamin N. Rome, MD, MPHAffiliations: Program On Regulation, Therapeutics, And Law (PORTAL), Division of Pharmacoepidemiology and Pharmacoeconomics, Department of Medicine, Brigham and Women's Hospital, and Harvard Medical School, Boston, MassachusettsFinancial Support: By Arnold Ventures (Drs. Kesselheim and Rome).Disclosures: Disclosures can be viewed at www.acponline.org/authors/icmje/ConflictOfInterestForms.do?msNum=M22-0756.Reproducible Research Statement: Study protocol: Available from Dr. Lalani (e-mail, hlalani@bwh.harvard.edu). Statistical code: Not applicable. Data set: Available at https://data.cms.gov/summary-statistics-on-use-and-payments/medicare-medicaid-spending-by-drug/medicare-part-d-spending-by-drug and https://costplusdrugs.com/medications/. This study was not submitted for institutional review board review because it used public, nonidentifiable data that does not constitute human subject research (45 CFR 46.102).Corresponding Author: Hussain S. Lalani, MD, MPH, 1620 Tremont Street, Suite 3030, Boston, MA 02120; e-mail, hlalani@bwh.harvard.edu.Correction: This article was corrected on 8 July 2022 to reflect a revised analysis that corrected errors in matching on drug formulation and strength. Data in the text, table, and figure were updated.This article was published at Annals.org on 21 June 2022. PreviousarticleNextarticle Advertisement FiguresReferencesRelatedDetailsSee AlsoCorrection: Potential Medicare Part D Savings on Generic Drugs From the Mark Cuban Cost Plus Drug Company Metrics Cited byNonpharmacologic and Pharmacologic Treatments of Adults in the Acute Phase of Major Depressive Disorder: A Living Clinical Guideline From the American College of PhysiciansAmir Qaseem, MD, PhD, MHA, Douglas K. Owens, MD, MS, Itziar Etxeandia-Ikobaltzeta, PharmD, PhD, Janice Tufte, J. Thomas Cross Jr., MD, MPH, and Timothy J. Wilt, MD, MPH, for the Clinical Guidelines Committee of the American College of PhysiciansCorrection: Potential Medicare Part D Savings on Generic Drugs From the Mark Cuban Cost Plus Drug Company July 2022Volume 175, Issue 7Page: 1053-1055KeywordsDrug pricesDrugsMedicarePharmacoeconomics ePublished: 21 June 2022 Issue Published: July 2022 Copyright & PermissionsCopyright © 2022 by American College of Physicians. All Rights Reserved.PDF downloadLoading ...